The research was conducted in chaha wereda gurage zone SNNP region of Ethiopia. The aim of the study was to assess opportunity and challenges of degraded land rehabilitation. From the total population of the study area 20% (73) respondents were selected in order to achieve the objective of the study at hand, for the study both primary and secondary data was generated. The primary data collection was started with a preliminary survey followed by a key informant interview, focus group discussion, and household survey with questionnaires. The secondary data were collected from books, unpublished thesis, project report, and workshops, open ended questionnaire and checklists for interview. The households were selected using stratified sampling technique (Cochran) sample size formula the process of analysis of the study was carried out using qualitative description and quantitative analysis. The collected data were analyzed using descriptive statistics, the quantitative data were analyzed frequency and percentage when appropriate the qualitative data were discussed to substantiate the study. And the results were expressed in the form of tables and graphs. The findings of the study indicated that limited labor availability, high cost of maintenance. Lack of knowledge, soil conditions, high surfaces runoff, poor vegetation coverage, poor monitoring and evaluation, poor implementation and poor training on the technology use are major challenges.